The Home Rent Rules 2025 make a historic change to the rental scenario in India, with the aim of giving both tenants and landlords more transparency and fairness. Every rental agreement will have to be in a standard government-approved format which will define the rent, maintenance, security deposit, and notice periods quite explicitly. Besides that, such agreements will have to be registered with a Rent Authority within the next 60 days after signing, either through an authorized online portal or physically, thus reinforcing their legal authenticity.
Deposit Limits: Easing The Tenant’s Burden
One of the most remarkable changes for tenants is the limitation on security deposits. The governments in India have now allowed landlords to accept a maximum amount of two months’ rent as a security deposit for residential properties, which is considerably lower than the previous customs. The ceiling deposit for the commercial property is fixed at six months’ rent. The motive behind this change is to lessen the initial financial load on the tenants, particularly in urban markets.
Rent Hikes Under Control
The new regulations introduce a lot of controls as to how much the rent can be increased. The landlords can increase the rent only once a year at the most, and to the tenant, they have to give a 90-day written notice before any hike. In several areas, the increase is linked to inflation or market trends, while in some places states are actually limiting it to a certain percentage, say 5-10%, on a yearly basis.
Digital And Legal Modernization
The beginning date of 1 July 2025 is also the point when all new rental agreements will be required to use a digital stamp only through authorized platforms such as state e-stamping portals. Furthermore, non-compliance with the digital registration could lead to penalties being imposed. The move towards digital documentation is being perceived as a means to reduce fraud, increase enforcement, and provide a reliable, visible record of tenancy agreements.
Dispute Resolution: Faster & Dedicated
In an attempt to settle rental disputes with less time and effort, the changes brought by the reforms have come up with a separate Rent Courts and Tribunals. Eviction disagreements, deposit refunds, or maintenance issues have already been predicted to be solved in no more than 60 days, and thus, avoiding the traditional long court battles.
Landlords’ Responsibilities & Tax Relief
Landlords are more responsible now in case of taking care of the property. They have to keep the structure safe and provide basic amenities, and the tenants have the right to go to the rent authority if their complaints are not solved.
Regarding taxes, the rental income is now officially included in “Income from House Property” (Section 28) for tax filing, and the TDS exemption limit has been increased to ₹6 lakh per year — thus, making it simpler for many small landlords to comply with their tax obligations.
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